It is reported that billet prices in the Black Sea region edged up by USD 20 per tonne to USD 30 per tonne to USD 480 per tonne to USD 495 per tonne FOB Black Sea mostly due to buyers from MEA rushing to secure supplies.
The current working level is seems to be closer to “high” values as we have heard that USD 480 level have been already passed by actual contracts.
The price increases are mainly due to a cost push rather than demand pull as the demand, especially for finished products remains weak.
On the pother hand, demand remained sluggish for rebars as a result of which the conversion margins of Ukrainian long producers came under sever pressure as the hike in billet realization was not transferred to rebars and wire rods fully. Wire rod market was a shade better but mainly due to lesser availability.
Thus billet prices seem to on crash course and we may see some major corrections in coming times.
Flats product market at Black Sea was much more stable last week with gains of USD 10 per tonne to USD 15S per tonne for some products of specific suppliers.